Qatar Real Estate News
Study highlights on construction sector in Qatar
Although Qatar records the highest economic growth in the World, it receives strong support of robust fiscal reserves, continued flow of revenue from gas exports, prudent monetary policies of central banks, and focused efforts by Government to build world-class construction sector, in a strong, emerging and mature market.
The sector is, however, yet to unleash its complete potential, as the real estate developers are applying caution, due to global economic recession, coupled with gradual fading of the country’s workforce, thus threatening the surplus in the supply of housing.
A study was carried out by a team of analysts at Ventures, who analyzed the various factors affecting this dynamic market. They analyzed the total Qatar market for building and construction sector, infrastructure developments, retail and commercial sector, residential sector, hospitality sector, leisure and tourism sector and mixed-use sector. Following analysis, they arrived at the following conclusions.
The Qatar construction sector is largely driven by a few factors such as the focus by the Government on infrastructure developments which has driven demand for construction projects, implementation of laws that support purchase of freehold residential units by foreigners, growing demand for affordable housing, the New Doha International Airport which drives demand for construction activities, robust fiscal reserves and continued flow of funds from hydrocarbons sector which boosts growth in construction sector, increasing demand for office space which stimulates growth in commercial and retail sector, and increasing investments in the hospitality sector which increases demand for construction activities.
On the other hand, the Qatar construction sector is restrained by few market conditions such as the gradually diminishing workforce which threatens developments in residential sector, the slack in private sector involvement which curtails real estate activity, the cautious approach adopted by property developers which results in cancellation or postponement of new projects, the oil sector which has been hit by the global economic recession thereby reducing flow of funds into construction sector, and long delays in project execution which hinders real estate development.
Posted on 6/2/2010